Both Staples (SPLS) and Costco (COST 1.10%) disappointed investors this quarter, but one key difference here separates a long-term performer from a company that could be in serious trouble. While Costco reported a 15% decline in profits, its third-straight quarter of underperforming expectations, Motley Fool analyst Bill Mann says, in this segment from Thursday's Investor Beat, that the company draws its real revenue from its membership model, and that this is a business that is still very strong at the moment. Meanwhile, with Staples announcing that it will be closing 10% of its North American stores, the situation for this company could be much more dire.
Costco vs. Staples
By Chris Hill – Mar 6, 2014 at 2:26PM
Price as of March 31, 2023, 10:00 a.m. ET
One of these retailers can go the distance, the other may be in serious jeopardy.
Bill Mann owns shares of Costco Wholesale. Chris Hill has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale. The Motley Fool owns shares of Costco Wholesale and Staples. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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